Property developer One Living, backed by former Macquarie banker turned investment manager Chris Green’s investment firm, has unveiled plans to bring more institutional capital into housing to help address the national supply crisis.

The New York-based investor has focused his firm, GreenPoint Partners, on addressing the supply shortage hitting middle market housing in Australia.

It is backing the new One Living business to develop more than 1000 units along the eastern seaboard. The new firm is starting with a development on Mona Vale Road, on the border of Mona Vale and Pymble, in Sydney’s Northern Beaches, with around 140 apartments planned. They are eyeing off more sites across the city.

With cost pressures rising in the industry, One Living’s model is to be a vertically integrated developer-builder, so it can respond directly to the housing gap by removing the cost inefficiencies embedded in traditional residential delivery.

“We are building a platform designed to operate at scale and starting in a market where there’s a clear need for quality, attainable housing,” One Living joint managing director Joseph Scuderi said.

“It’s that missing middle – it’s that attainable end of housing… that’s what most Australians invest into and what Australians can actually afford.”

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="798dfa93-4941-4db6-a696-31e9dc18e81c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.31.50%E2%80%AFPM.png?VersionId=mKBqi5C_DmeiXS.AtJkcR8LQIxqCqmFi" />

GreenPoint Partners brings years of experience assembling and scaling real estate operating businesses across major markets. And Green sees a big opportunity in Australia.

“For its size, sophistication and importance to the community, Australia’s living sector has remained largely under-institutionalised, which represents significant opportunity,” Green said. “GreenPoint identified that gap, assembled the right team, and is backing One Living to build a platform that is aligned to market needs.”

Green said being a builder-developer would give the company the capacity and flexibility it required to deliver reasonably-priced homes.

“We want it to be at that attainable level; not super high end luxury but at that attainable level,” he said.

<img alt="Mona Vale" data-entity-type="file" data-entity-uuid="74a5344a-4b26-4d4a-ada3-056b1220be77" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%202.32.15%E2%80%AFPM.png?VersionId=vY8hXHO4reBMdO8ZXMWCNtGZJofUPQ3j" />

&nbsp;

One Living will undertake a component of affordable housing in its schemes, which it will own and operate, and it could also run build-to-rent on some sites.

Green praised local policy settings.

“The NSW government is being very supportive, strategic and pragmatic in terms of how do we generate more supply of housing,” he said. “We think it’s actually positive for development and the bit that’s been lacking at that attainable level is that it’s lots of relatively small private developers, whereas we want to create an institutional platform.”

One Living is also&nbsp;looking at high-density projects and could take on more institutional funding in the future.

“The way we will be able to achieve economies of scale is through size,” Green added.

Joel Robinson

One Living enters Sydney's new apartment market with Northern Beaches site acquisition

It's been several years since there's been an opportunity to buy a brand new townhome in Melbourne's coastal suburb of Mordialloc. Even apartment developments in recent times have been few and far between in the area.

Local developer LDS Property identified the gap in new housing, securing a site on White Street, directly opposite&nbsp;Woodlands Golf Club Mordialloc. They've recently launched&nbsp;<a href="https://www.apartments.com.au/new-townhouses/wm-residences-mordialloc-102-white-street-mordialloc-vic-3195">WM Residences</a>, just 13 townhouses which they have already started building.

Projects by Buxton Director Heath Thompson, who is selling WM Residences, says the townhouses x that perfect middle ground be

"Mordialloc residents have had limited options to downsize within the suburb, often forcing them to look elsewhere despite long-standing ties to the area," Thompson says.

"With very little comparable new supply coming to market, projects like WM Residences are well placed, particularly as buyers look to capitalise on current conditions amid constrained supply."

[smartcode_project:default project_id=134646 project_image_fid=6109]

The development, designed by regarded architecture firm&nbsp;<a href="https://www.apartments.com.au/architects/ewert-leaf">Ewert Leaf</a>,&nbsp;adopts a deliberately restrained architectural approach, focusing on simplicity, durability and liveability rather than overt design gestures.

The boutique scale is central to the offering. With only 13 three-bedroom residences, each home is configured to prioritise functional layouts and everyday use, supported by private terraces and secure two-car garages.

Ewert Leaf’s design response leans into a calm, neutral material palette. Interiors are defined by oak flooring, white walls and soft finishes, creating a consistent and understated backdrop. The approach avoids trend-driven detailing in favour of longevity, with an emphasis on natural light and spatial clarity.

[smartcode_project:default project_id=134646 project_image_fid=6110]

Beyond aesthetics, the homes are designed to meet contemporary performance expectations. Each residence targets a minimum 6-star energy rating, incorporating double glazing, comprehensive insulation and all-electric Bosch appliances.

The project’s location supports a walkable coastal lifestyle, sitting within close proximity to Mordialloc’s foreshore, Main Street retail strip and the train station. Local cafés and dining venues, including Suburbia Deli and Hendriks Café, are within a short walk, reinforcing the area’s established neighbourhood character.

[smartcode_project:default project_id=134646 project_image_fid=6116]

While <a href="https://www.apartments.com.au/developments/mordialloc-vic-3195">Mordialloc</a> is often defined by its beach and pier, the project taps into other areas of day to day living, offering easy access to local food, casual dining and transport, rather than positioning itself purely as a lifestyle retreat.

WM Residences reflects a continued trend across Melbourne’s coastal suburbs towards smaller-scale, design-led townhouse developments, particularly on infill sites where proximity to amenity is already established.

With construction commenced prior to its market entry, the project aligns with a growing preference among buyers for developments with visible progress and defined delivery timeframes.

[smartcode_project_cta:default project_id=134646]

WM Residences fills gap in Mordialloc townhouse market

&nbsp;

Developer GURNER™ Group has revealed $1.65 billion in residential sales nationally across the 12 months to December 2025, driven largely by the continued momentum of its Docklands wellness-focused precinct, Elysium Fields.

The sales result was generated across seven projects in Victoria and New South Wales, headlined by Elysium Fields, GURNER™’s $2.75 billion mixed-use precinct planned for Harbour Esplanade in Docklands.

The project has recorded more than $500 million in sales across the first three towers, equating to around 580 apartments sold.

The first tower, Helios, has now sold out of its 240 private residences, with GURNER™ preparing to release a premium penthouse collection comprising 15 three-bedroom penthouses in coming weeks.

[smartcode_project:default project_id=144441 project_image_fid=370975]

Elysium Fields is being developed on the long-held 20,000 sqm Docklands site at 208-226 Harbour Esplanade, which had remained undeveloped for more than two decades prior to GURNER™ taking over the project around four years ago.

Construction has now commenced across four towers ranging between 18 and 30 storeys, with Hamilton Marino and Maxcon appointed as builders.

Once complete, the precinct is expected to comprise around 1,100 residences, alongside retail, hospitality and public realm uses integrated throughout the site.

[smartcode_project:default project_id=144441 project_image_fid=370981]

Designed by Fraser &amp; Partners in collaboration with GURNER™ Design House, the project has been positioned around the developer’s broader focus on wellness-led residential living.

“We don’t sell apartments. We create a true luxury lifestyle that simply doesn’t exist elsewhere in the market today,” Founder and Executive Chairman Tim Gurner said.

“To deliver that requires an extraordinary level of detail, coordination and discipline across multiple verticals, from design and hospitality through to wellness and service.”

“We’ve always believed that living extends far beyond the physical residence. It’s about how you feel the moment you arrive, how you live day-to-day, and the ecosystem that supports that.” 
[smartcode_project:default project_id=144441 project_image_fid=370977]

The project’s design places a heavy focus on landscaping, wellness amenities and biophilic design principles.

Plans include around 3,700 sqm of landscaped gardens and open space throughout the precinct, alongside a retail and dining offering spanning approximately 5,000 sqm.

The broader public realm strategy centres around what GURNER™ describes as the “Path of Life”, an urban forest and landscaped pedestrian environment intended to connect the various buildings and wellness spaces across the precinct.

The apartments themselves will incorporate a range of wellness-focused inclusions, including purified air and water systems, circadian lighting, antimicrobial surfaces, and optional in-home wellness upgrades.

[smartcode_project:default project_id=144441 project_image_fid=370980]

Gurner said the company’s experience through its Saint Haven wellness clubs had directly informed the residential offering now being incorporated into Elysium Fields.

“We’re seeing a clear global shift toward longevity, performance and proactive health,” Gurner said.

“Our role is to deliver that in a way that feels seamless, highly private and beautifully resolved within the environments we create.”

A large component of the wellness offering is planned through the resident amenity and health facilities proposed within the precinct.

That includes plans for bathing and recovery facilities spread throughout the towers, incorporating mineral pools, saunas, steam rooms, flotation therapy, red light therapy and wellness lounges.

The developer is also seeking approvals for what it describes as a “reverse ageing medical clinic” within the precinct.

[smartcode_project:default project_id=144441 project_image_fid=370978]

According to project information released by the group, the proposed facility would include cryotherapy, IV infusion therapy, infrared and dry saunas, PEMF beds, MRIs, DEXA scans, brain scans and blood analysis services.

Within the first tower, Helios, residents will also have access to a dedicated amenity offering known as the Sky Private Club.

The upper 15 levels of the building will include private lounges, dining spaces, rooftop amenities and optional private wellness studios integrated within residences.

The Helios tower itself comprises 260 apartments ranging between 60 sqm and 300 sqm, including a collection of penthouses.

That includes a planned two-storey penthouse spanning around 600 sqm with uninterrupted bay views.

The Elysium Fields precinct is being delivered in partnership with Digital Harbour Holdings, a consortium that includes the Liberman family, which controls the development rights across the Docklands site.

[smartcode_project:default project_id=144441 project_image_fid=370979]

The sales result comes as GURNER™ continues expanding its national development pipeline beyond Victoria.

“We have a strong pipeline across Australia and are now focused on scaling into key markets including New South Wales and Queensland, while continuing to build on our Melbourne base,” Gurner said.

“We currently have more than $3 billion in the market, growing to over $5 billion by October, and expect to materially outperform last year in the 2026 calendar year.”

The result also reflects the continued strength of the upper-end apartment market in Melbourne, particularly for owner-occupier-focused product with large-scale amenity and lifestyle offerings.

[smartcode_project_cta:default project_id=144441]

Record result anchored by the Group’s “utopian” Elysium Fields precinct – defying market headwinds in Docklands.

Elysium Fields drive Gurner to $1.65 billion in apartment sales over 2025

National Australia Bank (NAB) will fund <a href="https://www.apartments.com.au/new-apartments/palmera-residences-gold-coast-18-garfield-terrace-surfers-paradise-qld-4217">Palmera</a>, a $1 billion, 52-level luxury residential tower being developed by Central Equity in one of the Gold Coast’s most tightly held coastal locations at Northcliffe.

The project, launched recently by <a href="https://www.apartments.com.au/developers/central-equity">Central Equity</a>, one of Victoria’s largest private residential developers, comes at a time when construction funding for large residential developments has become increasingly competitive as lenders tighten exposure to the sector.

Multiplex has been appointed the builder, and construction is now underway.

[smartcode_project:default project_id=108274 project_image_fid=365784]

Since its first project, Central Equity has delivered more than 85 residential developments with a combined end value exceeding $8 billion.

Palmera reflects Central Equity’s growing focus on the Gold Coast luxury apartment market and continues a relationship between Central Equity and NAB that dates back to the late 1980s, when the bank funded one of Melbourne’s earliest inner-city residential towers at a time when high-rise apartment living in the CBD was largely unproven.

“NAB’s funding of Central Equity’s $36 million CBD development in the late 1980’s to the financing of the billion-dollar tower today highlights the long-term relationship between the two organisations in delivering major residential projects” said Central Equity Founder and Chairman Eddie Kutner.

He said NAB’s early support was instrumental in helping establish the company’s development model.

“When we commenced our first residential tower in the late 1980s the concept of funding off-the-plan apartments was still largely untested in Australia,” Kutner said.

“NAB recognised the opportunity early and supported the project when others were uncertain. That relationship has now continued for more than 37 years across many developments.”

[smartcode_project:default project_id=108274 project_image_fid=365771]

Central Equity was established in 1987 when Melbourne’s CBD and Southbank precinct were still dominated by warehouses and commercial buildings. Fewer than 100 residents lived in Southbank at the time, and large-scale residential development in the inner city was not widely considered.

Recognising changing demographics and lifestyle preferences, the company began developing high-rise residential projects designed to bring permanent residents into the city centre.

Central Equity has provided accommodation for approximately 40,000 residents across Melbourne’s CBD and Southbank, while also incorporating supporting infrastructure including essential lifestyle facilities like retail spaces, childcare facilities and neighbourhood activity centres.

Central Equity has spent many years assembling the Palmera development site on the corner of Garfield Terrace and Frederick Street in Northcliffe, creating a supersite of around 3,300 sqm.

The developer said the Palmera apartment tower reflects its long-term view of the Gold Coast as a growing and increasingly diversified economy.

[smartcode_project:default project_id=108274 project_image_fid=365768]

Supported by infrastructure including the light rail network, major road upgrades expanded education, hospital and medical facilities and continued expansion at the Gold Coast Airport with more international and domestic flights.

Positioned in the tightly held Northcliffe precinct, the 52-level tower will deliver 347 apartments, targeting buyers seeking a high-end coastal lifestyle, from downsizers to interstate investors.

Designed by Marchese Partners with interiors by DBI, Palmera has been conceived as a next-generation residential offering, featuring a collection of oversized apartments, with premium three-bedroom residences offering sweeping northern views stretching from Surfers Paradise through to Burleigh Heads.

[smartcode_project_cta:default project_id=108274]

NAB funds $1 billion Surfers Paradise apartment development, Palmera

Two years after completing one of the newest developments in North Sydney, developer <a href="https://www.apartments.com.au/developers/aqualand-australia">Aqualand</a> is turning its attention to the rapidly evolving St Leonards apartment market.

The developer, which completed AURA by Aqualand on North Sydney's Walker Street, has lodged plans for a 5,918 sqm site at <a href="https://www.apartments.com.au/new-apartments/33-37-herbert-street-st-leonards-nsw-2065">33-37 Herbert Street, St Leonards,</a> seeking approval for a pair of residential towers rising above a shared podium opposite Royal North Shore Hospital.

The proposal forms part of the broader transformation underway across the St Leonards-Crows Nest precinct, where former industrial and commercial sites are increasingly being redeveloped into high-density mixed-use projects tied to major transport infrastructure.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="2cc428cf-fe70-4cac-9cd5-264ad53af62c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.56%E2%80%AFAM.png?VersionId=otKSnHtbjAvAddOnovyXQMgcAwE6DMe1" />

According to the planning documents, the site sits “within the St Leonards–Crows Nest Strategic Centre, identified by the NSW Government as a key area for accommodating future jobs and housing across Sydney.”

The proposal has been designed by fjcstudio, formerly FJMT Studio, and is being progressed through the State Significant Development pathway due to its scale and affordable housing provision.

The scheme would comprise 413 apartments, including 46 affordable housing units, alongside retail and commercial uses fronting Herbert Street. The project would also include communal open space, landscaping, a swimming pool, gymnasium, children’s play areas and podium-level resident amenities.

Planning documents show the development would consist of a part-13, part-39 storey tower form positioned above a four-storey podium.

“The development comprises a unified podium that activates the street interface, and two setback towers to accommodate new housing supply while maintaining an appropriate human scale at ground level,” fjcstudio noted in its Design Report.

The northern and southern towers have been shaped to respond to the surrounding skyline while also limiting overshadowing impacts to nearby public open space, particularly Talus Reserve.

The design report said the differing tower heights were intended to “contribute to a varied skyline while responding to the surrounding built form context and solar access considerations.”

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="36da62dc-ff9e-41f2-a7e3-7be38373751c" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.45%E2%80%AFAM_0.png?VersionId=Mo6Rp2r.XRLTzIfg_PEEpw8NepDH8UBs" />

The site sits directly opposite Royal North Shore Hospital and within walking distance of both St Leonards Station and the new Crows Nest Metro station.

While the site itself sits just outside the formal Crows Nest Transport Oriented Development boundary, the planning documents repeatedly reference its alignment with the broader TOD objectives reshaping the Lower North Shore.

“The site is located adjacent to St Leonards Station and in close proximity to Crows Nest Metro which is within the Crows Nest Transit Orientated Development Accelerated Precinct which has been identified by the NSW Government to support housing delivery,” the Design Verification Statement noted.

According to fjcstudio, the project has been designed to respond to the broader transition occurring across St Leonards, where increasing residential density is being concentrated around transport infrastructure and employment hubs.

“The broader precinct is undergoing significant change, with a mix of existing mid-rise buildings and newer high-density developments,” the report stated.

“Recent and approved projects indicate a consistent shift toward taller built form, typically organised as tower-and-podium typologies with more active ground levels.”

The proposal includes close to 6,000 sqm of retail and commercial space across the ground floor and podium levels, designed to create a more activated street edge along Herbert Street.

Aqualand’s plans would also introduce a landscaped podium shared between the two towers, with communal open space in the form of a podium rooftop designed to support resident interaction and improve urban greening outcomes. The scheme would also introduce pocket parks at the northern and southern ends of the site, including a landscaped area at the corner of Herbert and Ella streets designed to improve pedestrian amenity and soften the streetscape.

&nbsp;

The proposal is being progressed through the NSW Government’s Housing Delivery Authority pathway, which was introduced to accelerate housing supply across the state. The application was declared State Significant Development in April 2025 following an expression of interest process.

<img alt="Aqualand" data-entity-type="file" data-entity-uuid="faf6d97d-2671-454f-b85a-fe1c6a7be608" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-05-28%20at%209.51.49%E2%80%AFAM.png?VersionId=diVd28OBVr5.YV.7prrOz.uAanwwwm7a" />

St Leonards has been particularly active with new developments in recent weeks. Developer SP Setia’s <a href="https://www.apartments.com.au/news/nsw/first-look-sp-setia-targets-st-leonards-skyline-with-40-storey-tod-tower">plans for a new 42-storey tower</a> recently went on exhibition through the same pathway, while <a href="https://www.apartments.com.au/news/nsw/first-look-stockland-plans-52-storey-538-apartment-st-leonards-tower">Stockland’s 52-storey tower proposal</a> was also recently unveiled.

Aside from the St Leonards project, which is expected to take around nine months to move through the approvals process ahead of a potential 2027 launch, Aqualand is also preparing to launch Boronia, a new apartment project in Roseville comprising around 111 apartments on Larkin Street.

The developer also has approvals in place for the next stage of the Barangaroo precinct, which will feature new residential, retail, hospitality and community uses, alongside a new metro entry across the five-hectare site.

More than 50 new retail destinations are planned for Central Barangaroo, alongside a 270-metre-long boulevard connecting Hickson Park to Nawi Cove. Together with Harbour Park, more than 50 per cent of the precinct will comprise public open space and parkland.

First look: Aqualand joins St Leonards apartment party

Savills

<html><body>
There has been an increase of 132% in Ryde’s property prices over the past decade, according to Savills’ latest report.
“The average price in Ryde in September 2016 was $1.5 million for a house and $656,000 for a unit.
“House prices are 40% higher than the average across Sydney, but still offer a substantial discount compared to the neighbouring waterfront suburbs of Tennyson Point and Putney, where house prices average over $2 million.
“However, units in Ryde offer a discount of 7% when compared to the Sydney average due to a higher concentration of units in central, more expensive locations.
“Over the past 10 years, house and unit prices in Ryde have increased significantly with values rising by 144% and 122% respectively, outperforming the Sydney average.
“Over the past year, the rate of annual growth has slowed to just 5%, reflecting a more subdued housing market seen across Sydney,” the report stated.
Ryde’s median house prices is $1,600,000 while units can expect to have a median price of $691,400.
A five bedroom house at <a href="https://www.realestate.com.au/property-house-nsw-ryde-124941598" target="_blank">10 Willow Crescent</a>, Ryde has been listed with a price guide of $1.75 million.
Similarly a one bedroom unit at <a href="https://www.realestate.com.au/property-apartment-nsw-ryde-125578458" target="_blank">6065/78A Belmore Street</a>, Ryde (below) has been listed for $680,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/05/31/6065_78A%20Belmore%20Street.jpg" alt="">
A strong tenant demand is driving investors to Ryde Savills says.
“Investors are attracted to Ryde for a number of reasons, including strong tenant demand.
“In Ryde, 28.1% of households are in the private rented sector, slightly higher than the average across Greater Sydney of 25.0%.
“Rental growth in Sydney and in Ryde has not kept pace with the strong capital value growth but the returns can still be attractive.
“The median weekly rent is $690 for houses and $520 for units, resulting in average yields of 2.4% and 4.1% respectively.
“Over the past 10 years, unit supply in Ryde has been inconsistent.
“A number of large-scale developments came to the market in 2014, resulting in two and half times the number of unit sales that year compared to the average over the previous five years.
“With strong price growth and rental demand, the Ryde market was able to absorb this increase in stock and the number of unit sales over the past year has decreased to be in line with the long-term average.
“The supply of new units can also affect the vacancy rate.
“In Ryde, the vacancy rate in September 2016 was 2.7%, up from 1.5% three months previous as more properties become available to rent,” Sophie Chick, Head of Savills Residential Research advised.
The population in Ryde increases by 2000 new residents annually Savills stated.
“Over the past 10 years, the population across the City of Ryde has increased by 20%, which equates to nearly 2,000 new residents per year.
“International buyers are an important source of demand for the housing market across Sydney as both owner occupiers and investors.
“In Ryde, there is already a large international community, particularly from Asia, with nearly 20% of residents describing their ancestry as Chinese compared to just 8% across Sydney.
“Residents in Ryde work in a number of locations.
“The City of Ryde, including Macquarie Park, is the most popular destination, accounting for a quarter of all workers.
“However, 75% of the workforce living in Ryde commute to elsewhere in Sydney, reflecting Ryde’s connectivity to both the centre of Sydney and other key employment locations such as Parramatta.
“The largest employment industry for people living in Ryde is the Professional, Scientific and Tech sector.
“This industry is the fastest growing in Sydney meaning Ryde is well-placed to draw on the newly created wealth that will result, as Tech buyers in particular look to emerging markets,” the report commented.
Savills says that Ryde will continue to benefit from increasing demands in Sydney’s population growth.
“The property market in Ryde has already, and will continue to, benefit from increasing demand due to Sydney's population growth.
“Over the next 20 years, the City of Ryde’s population is forecast to increase by 43% compared to 37% across Greater Sydney.
“As well as the new residential units under construction, a number of new office, retail and infrastructure projects are underway which will continue to increase the desirability of the area for existing and new residents,” the report stated.
 
</body></html>

j.ballantyne1990-6AQqhLzZaK

Property prices on the rise in Ryde: Savills

<html><body>
The UK commercial property investment markets were already past their peak in both pricing and volume terms a year ago, and the result on the referendum on EU membership has arguably done little to change the trend, according to Savills’ latest report.
Confidence was definitely rocked in the third quarter of 2016, but by the end of last year there was acceptance that Brexit is a long process, rather than a one-hit event.
What has changed since the referendum is the make-up of investors that are active in the UK, with less activity by institutions and a sharp rise in demand from overseas private investors.
<a href="https://www.propertyobserver.com.au/images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.03.04%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.03.04%20pm.jpg" alt="">
Many investors have been attracted by the weakening of the pound, and at present this is seen as enough to compensate for a perceived increase in occupational risk.
Overall, our predictions for 2017 and beyond are investment volumes are expected to trend downwards towards £50 billion per annum, with a swing away from opportunistic deals to income-security plays.
Yields are expected to rise in most sectors, though the stable debt market, low vacancy rates, and global investor demand is expected to put a lower ceiling on prime yields than was reached during the GFC.
Brexit definitely carries a risk of creating a sustained period of occupier uncertainty, but to some degree this should be balanced by lower levels of development activity.
<a href="https://www.propertyobserver.com.au/images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.03.12%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.03.12%20pm.jpg" alt="">
However, until some clarity emerges as to how Britain will exit from the EU, the real impact on the UK market will be hard to quantify.
“We expect investment volume in Continental Europe in 2017 to be similar to that of 2016,” the report stated.
Although interest rates are expected to rise to 1.16% in the Eurozone, the property market should remain high on investors’ radar.
“In France, Germany and the Netherlands, where elections will be held, we expect a wait and see attitude by some investors during the first half of the year,” the report stated.
However, the prevailing story regarding core countries is the lack of prime product.
<a href="https://www.propertyobserver.com.au/images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.03.21%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.03.21%20pm.jpg" alt="">
At the other end of the spectrum, prime yields in non-core countries are still above the European average, offering more attractive returns and yield compression potential.
This is especially so in countries like Spain and Italy where strong property fundamentals combined with the availability of portfolio opportunities are attracting foreign investors.
</body></html>

Little change in the United Kingdom commercial property market despite Brexit: Savills

<html><body>
Leased space to the education sector in Melbourne's CBD in 2016 rose 200 percent on the previous year with increases in land taxes hitting stock levels, putting upward pressure on rents, according to real estate firm Savills.
The trend is likely to continue in 2017, according to education sector specialist and Savills director Mathew Kent. 
Savills is currently dealing with more than 15 leasing requirements for in excess of 60,000 sqm.
Some of the educators in the market include Monash University (40,000sqm), Think Education (2000sqm), Baxter (3000sqm), and RMIT (10,000sqm).
The total 39,840 square metres leased (deals over 500sqm) in 2016 included 14,222 square metres of prime space as institutions, including the top universities, were forced, in some cases, to take higher grade accommodation in a market limited by the availability of education specific space.
Kent said withdrawal of secondary buildings for residential conversion, a lack of 9B accredited buildings, fit-out costs, and competitors in the same building, were all issues which worked to limit the amount of space available to educators.
"For these reasons the availability of suitable accommodation to meet the demand from education users in Melbourne is now at levels where landlords have been able to demand higher rental and more attractive terms for suitable accommodation,’’ Kent said.
He said the increasing demand for limited space had seen rents rise from a range of $300 sqm to $350 sqm, to $550 sqm plus over the last five years with a corresponding fall in incentives.
Kent said the significant hike in land tax had also had been important in reducing available space.
"The doubling of land tax in low rise buildings may render the current use of a building, in terms of its tenancy profile and rental returns, unviable for some landlords and that has forced them, in some cases, to sell to residential developers,’’ Kent said.
 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td colspan="4" valign="top" width="475">
Select Central Melbourne Education Leases to December 2016
</td>
</tr>
<tr>
<td valign="top" width="50">
Date
</td>
<td valign="top" width="160">
Property
</td>
<td valign="top" width="79">
NLA (sq m)
</td>
<td valign="top" width="185">
Tenant
</td>
</tr>
<tr>
<td valign="top" width="50">
Mar-16
</td>
<td valign="top" width="160">
277 William St
</td>
<td valign="top" width="79">
960
</td>
<td valign="top" width="185">
Danford College
</td>
</tr>
<tr>
<td valign="top" width="50">
Jul-16
</td>
<td valign="top" width="160">
553 St Kilda Rd
</td>
<td valign="top" width="79">
8,052
</td>
<td valign="top" width="185">
Monash University
</td>
</tr>
<tr>
<td valign="top" width="50">
Aug-16
</td>
<td valign="top" width="160">
399 Lonsdale St
</td>
<td valign="top" width="79">
892
</td>
<td valign="top" width="185">
Chisholm Institute
</td>
</tr>
<tr>
<td valign="top" width="50">
Aug-16
</td>
<td valign="top" width="160">
700 Collins St
</td>
<td valign="top" width="79">
2,682
</td>
<td valign="top" width="185">
Open Universities
</td>
</tr>
<tr>
<td valign="top" width="50">
Aug-16
</td>
<td valign="top" width="160">
168 Exhibition St
</td>
<td valign="top" width="79">
3,772
</td>
<td valign="top" width="185">
Acknowledge Education
</td>
</tr>
<tr>
<td valign="top" width="50">
Sep-16
</td>
<td valign="top" width="160">
727 Collins St
</td>
<td valign="top" width="79">
4,500
</td>
<td valign="top" width="185">
Deakin University
</td>
</tr>
<tr>
<td valign="top" width="50">
Sep-16
</td>
<td valign="top" width="160">
360 Collins St
</td>
<td valign="top" width="79">
4,000*
</td>
<td valign="top" width="185">
La Trobe University
</td>
</tr>
<tr>
<td valign="top" width="50">
Sep-16
</td>
<td valign="top" width="160">
247 Collins St
</td>
<td valign="top" width="79">
1,664
</td>
<td valign="top" width="185">
Discover English
</td>
</tr>
<tr>
<td valign="top" width="50">
Nov-16
</td>
<td valign="top" width="160">
376 Bourke St
</td>
<td valign="top" width="79">
943
</td>
<td valign="top" width="185">
Brighton Institute of Technology
</td>
</tr>
<tr>
<td colspan="4" valign="top" width="475">
Source: Savills Research                                                   *Expansion on multiple floors
</td>
</tr>
</tbody></table>
In the most recent deals Melbourne University has taken 6500sqm at 333 Exhibition St, Cambridge (7200sqm at 108 Lonsdale Street), and Charles Sturt University (3000sqm at 601 Bourke Street).
Survey author, Savills’ Associate Director Research &amp; Consultancy, Monica Mondkar, said the education sector accounted for nearly 21 per cent of the 191,484 square metres of office space leased by the Government &amp; Community sector in 2016.
Ms Mondkar said the latest Department of Education figures revealed there were 554,179 full-fee paying international students in Australia on a student visa in 2016 representing a 10.9 per cent increase on 2015 with new enrolments in Victoria up by 12 per cent.
The average annual enrolments growth rate has been 6.5 per cent per year over the last ten years.
She said the Victorian Governments’ $31.9 million investment over four years in the international education sector announced in the 2016/2017 budget would likely underpin further rises in student numbers.
"Student numbers have been increasing year on year and, as Australia’s third biggest export at circa $20 billion, there is little doubt the Melbourne CBD education market will continue to grow and that is reflected in student choice with Melbourne’s international student population at more than 30,000*,’’ Ms Mondkar said.
According to the QS Best Student Cities 2016 index – a ranking of the world’s leading urban destinations for international students by university ranking, affordability, student mix, desirability, and employer activity – Melbourne ranked second behind Paris with Tokyo third followed by Sydney in fourth place.
QS Best Student Cities 2016 
<table style="width: 214px; height: 192px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="170">
Ranking
</td>
<td valign="top" width="163">
City
</td>
</tr>
<tr>
<td valign="top" width="170">
1
</td>
<td valign="top" width="163">
Paris
</td>
</tr>
<tr>
<td valign="top" width="170">
2
</td>
<td valign="top" width="163">
Melbourne
</td>
</tr>
<tr>
<td valign="top" width="170">
3
</td>
<td valign="top" width="163">
Tokyo
</td>
</tr>
<tr>
<td valign="top" width="170">
4
</td>
<td valign="top" width="163">
Sydney
</td>
</tr>
<tr>
<td valign="top" width="170">
5
</td>
<td valign="top" width="163">
London
</td>
</tr>
<tr>
<td valign="top" width="170">
6
</td>
<td valign="top" width="163">
Singapore
</td>
</tr>
<tr>
<td valign="top" width="170">
7
</td>
<td valign="top" width="163">
Montreal
</td>
</tr>
<tr>
<td valign="top" width="170">
8
</td>
<td valign="top" width="163">
Hong Kong
</td>
</tr>
<tr>
<td valign="top" width="170">
9
</td>
<td valign="top" width="163">
Berlin
</td>
</tr>
<tr>
<td valign="top" width="170">
10
</td>
<td valign="top" width="163">
Seoul
</td>
</tr>
</tbody></table>
</body></html>

Education leasing up 200 percent on previous 12 months: Savills

<html><body>
The iconic Australian Exchange Centre, home of the ASX, is soon to hit the market with price expectations of more than $325 million. 
The listing of the building at 20 Bridge Street in the heart of Sydney’s financial district makes it the first institutional grade Sydney CBD core offering since June 2013. 
The Malaysian pension fund Kumpulan Wang Persaraan is selling the Exchange Centre.
The A-grade 20,329 sqm commercial building comprises 13 upper levels of office accommodation, ‘Exchange Square’ retail on the ground level and an auditorium at basement level.
The building is 96 per cent leased with a long Weighted Average Lease Expiry (WALE) of more than seven years and managed by Investa.
It last exchanged hands for $185 million in 2011, being snapped up by an offshore institutional investor, according to RP Data.  
The ASX Group occupies more than 45 per cent of the building, with a lease expiry of more than 11 years.
The listing agents are Simon Fenn, Ian Hetherington and Ben Azar of Savills.
The high profile asset is only one of six buildings valued at over circa $200 million and which is 100 per cent owned within the CBD core.
“This is a rare opportunity to purchase 100 per cent interest in the Sydney core and we expect a strong mix of both local and offshore interest, likely to come from China, Hong Kong, Singapore, Japan and parts of Europe,” said Simon Fenn, managing director NSW at Savills. 
The Exchange Centre is minutes from Circular Quay and Wynyard Train Station. 
 
</body></html>

prateek24-ezbwHMbNAk

Sydney’s coveted Exchange Centre lists through Savills with price hopes of more than $325 million

<html><body>
Melbourne is the top ranked ‘tech city’ in Australia and 14th in the world offering the infrastructure, business environment, talent pool and lifestyle to make it a strong base for tech companies, according to new research from London based international real estate advisor Savills.
And according to Victoria’s Minister for Small Business, Innovation and Trade, Philip Dalidakis, that is no surprise given the Government’s policy of taking "brand Victoria to the world’’.
While US cities dominated the top of the Tech Cities rankings – Austin (Texas) came in at number one followed by San Francisco, New York, and London, according to the Tech Cities 2017 report - the liveability of cities including Melbourne, Amsterdam, Copenhagen and Toronto, placed them above more established global tech rivals.
Savills National Head of Research in Australia, Tony Crabb, said the elevation of `liveable’ cities in the rankings centred on their strong performance in terms of ‘buzz and wellness’, factors that were likely to prove increasingly important to the tech industry in decisions on where to locate and on attracting future talent. Melbourne was ranked 8th on this index.
"Everybody here knows Melbourne’s reputation as the world’s most liveable city, a title it has taken for six consecutive years, and so it is not surprising to see how well Melbourne ranked on this metric.
That single factor may well prove, more than any other, the most critical factor in further establishing and maintaining Melbourne‘s pre-eminence in what is increasingly one of the most important employment and growth industries in the country,’’ Mr Crabb said.
Savills Tech Cities 2017 Buzz and Wellness Index 
<a href="https://www.propertyobserver.com.au/images/2017/03/07/Chart-1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/07/Chart-1.jpg" alt="">
The UK report quantified ‘buzz’ (nightlife, entertainment, culture) and ‘wellness’ (pollution levels, quality of parks, healthcare, commuting times) and the cost of living in each location to create a specific ‘city buzz and wellness index’.
It noted that given the increased focus on physical and mental wellbeing among the latest generation of workers, it could come to dominate their decision-making.
According to Nicky Wightman, Director Savills Worldwide Occupier Services, providing an environment which enables tech companies and start-ups to plug straight into the infrastructure and funding they need to be a success is an important part of any tech city.
"However this alone won’t necessarily make them attractive destinations. Young tech talent increasingly want to live in dynamic, healthy neighbourhoods within walking or cycling distance of the office.
Cities that deliver those environments are therefore likely to consolidate their positions as destinations for tech talent and occupiers who want to attract the best staff,’’ Ms Wightman said.
The report’s release follows the Victorian Government’s recent announcement that Texas-based software firm, AgileCraft, would open its Asia-Pacific headquarters in Melbourne.
Savills Tech Cities 2017 overall rankings:
<a href="https://www.propertyobserver.com.au/images/2017/03/07/Chart%202.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/03/07/Chart%202.jpg" alt="">
Mr Dalidakis, said AgileCraft was yet another example of a leading global tech company choosing Victoria as an entry point for the Asia-Pacific market.
"Over the past two years we have taken brand Victoria to the world, attracting more and more leading global companies to invest in the state’s booming tech sector,’’ Mr Dalidakis said.
AgileCraft Chief Executive Officer Steve Elliott said Melbourne’s emerging tech sector and close proximity to Asia made it a perfect location to set up its regional headquarters and expand throughout the Asia Pacific region.
“We consider ourselves to be an innovative company at AgileCraft and the Victorian Government made it clear to us that it is trying to attract innovative businesses to the state, so we look forward to being a part of the Victorian technology ecosystem,” Mr Elliot said.
</body></html>

Melbourne ranks as top ‘tech city’ in Australia

<html><body>
In a world racked by political uncertainty induced by Brexit negotiations, European elections and a new presidency in the US, the Asian markets appear to have maintained their appeal in 2016, according to Savills’ latest report.
"Office yields across all major cities hardened over the second half of last year and we believe there is still some (limited) scope for them to fall further in 1H/2017; the low interest rate environment, the ongoing ‘search for yield’ and increasing allocations to real estate are all considered to be positives for the sector," the report stated.
<a href="https://www.propertyobserver.com.au/images/2017/02/21/Screen%20Shot%202017-02-21%20at%205.21.11%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/21/Screen%20Shot%202017-02-21%20at%205.21.11%20pm.jpg" alt="">
One of the most significant challenges for investors is a lack of prime office stock, however, and volumes have fallen consistently compared with 2015, a situation which is unlikely to reverse any time soon.
This lack of liquidity across most asset classes has arguably been masked by the above average number of portfolio deals recorded over the second half.
Scarcity of assets has resulted in money accumulating on the sidelines, causing fundraising to decline versus the previous year.
<a href="https://www.propertyobserver.com.au/images/2017/02/21/Screen%20Shot%202017-02-21%20at%205.21.22%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/21/Screen%20Shot%202017-02-21%20at%205.21.22%20pm.jpg" alt="">
Despite its inward focus, Asian real estate capital has continued to explore overseas markets with the US attracting the lion’s share of deals, followed by the UK.
Cross border activity in 2016 was dominated by China, South Korea, Singapore and Hong Kong in that order while South Korean activity registered the highest rate of increase.
<a href="https://www.propertyobserver.com.au/images/2017/02/21/Screen%20Shot%202017-02-21%20at%205.21.37%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/21/Screen%20Shot%202017-02-21%20at%205.21.37%20pm.jpg" alt="">
It will be interesting to see how Asian capital reacts to rate hikes  by the Federal Reserve and a strengthening US dollar set against a less predictable policy landscape in 2017 if that  is what comes to pass.
</body></html>

Asian commercial property markets continue to maintain their appeal despite uncertainty: Savills

<html><body>
The last 12 months has brought a dose of healthy moderation to the US economy, according to Savills’ latest report.
Investors and lenders forced a recalibration of high-flying tech firms and oil and gas prices found a floor.
There seems to be some convergence in residential and commercial property markets as well – pricing in luxury markets is levelling off.
In comparison to the volatility in equity markets, real estate in the US held up very well. Office property sales in the US totalled $124 billion through November of this year, roughly 4 percent below the $129.6 billion in the first 11 months of 2015.
This slight decline comes as no surprise.
<a href="https://www.propertyobserver.com.au/images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.35.49%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.35.49%20pm.jpg" alt="">
Many of the trophy assets in gateway markets such as Manhattan and Chicago changed hands in 2014 and 2015, the novelty of the industrial sector has worn off, and there simply are not as many institutional- grade or conversion opportunities in secondary or tertiary markets to keep pace with the gateway markets.
Unlike the fundamentals underlying retail sales and office markets this is not a demand deficiency – it is a supply shortage.
In this sense investment sales are performing a bit like labour markets – investors and top employers have been turning over every stone in every market.
So far, most investors seem to be maintaining appropriate selectivity.
Many are following the demographic upside to Sunbelt markets such as the Carolinas as well as Mountain West markets including Salt Lake City and Las Vegas.
Steady population and job growth and controlled construction activity in these markets leaves some room for NOI growth in the next couple of years.
Europe has seen a similar phenomenon - volume is up significantly in the Netherlands, Spain and Sweden but there are only so many investment grade assets in these markets.
<a href="https://www.propertyobserver.com.au/images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.36.00%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.36.00%20pm.jpg" alt="">
The “most-favoured market” status of some gateways is slipping slightly.
Most buyers are showing disdain for gateway markets such as Manhattan and Washington DC, where demand is running short of growing supply.
On the other hand, they have remained active in Boston and Los Angeles, where the life science and entertainment/social media sectors continue to grow.
Boston’s market fundamentals are in fact among the strongest in country and appear as though they have more to run than San Francisco, which has seen a recent spike in sublet supply and drop-off in leasing.
Similarly, Los Angeles has seen its strongest leasing volume in a decade.
Office property sales have surged more than 75 percent during 2016 from 2015 levels.
<a href="https://www.propertyobserver.com.au/images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.36.11%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.36.11%20pm.jpg" alt="">
Finally, buyers are acknowledging that some of the traditionally “low barrier to entry” markets that were always seen as a risk due to chronic overbuilding may have matured in this cycle.
Atlanta and Dallas/Fort Worth stand out as markets that are reaping the rewards of a controlled development pipeline.
</body></html>

United States real estate markets hold up well: Savills

<html><body>
The calendar year 2016 marked another year of strong performance in property investment markets, according to Savills’ latest report.
In Australia, Savills recorded approximately $27 billion worth of commercial property transactions in the  12 months to December 2016, down from $33.74 billion in the previous year, but much the same as the five year average ($25.6 billion).
A lack of portfolios and a diminishing supply of prime properties for sale continues to weigh on investment volumes.
<a href="https://www.propertyobserver.com.au/images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.16.16%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.16.16%20pm.jpg" alt="">
Foreign investors were the most active in the investment market in 2016, purchasing 40 percent of stock reported sold or approximately $10.7 billion.
Professional investors, represented by Trusts, Funds and Syndicates, purchased a total of $8.75 billion of commercial property.
Both buyer groups remain keenly interested with ongoing appetite for commercial property investment.
A slowdown in resource demand from China, a reversal of commodity prices and the end of the mining investment boom (coupled with the GFC) saw interest rates in Australia fall to historic lows.
<a href="https://www.propertyobserver.com.au/images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.16.26%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.16.26%20pm.jpg" alt="">
A subsequent pickup in occupier and investment demand in Melbourne and Sydney followed whilst there was a substantial reversal in fortunes in Brisbane and Perth. Whilst Brisbane has stabilised,
Perth continues to be challenged (more office supply is in the pipeline), Melbourne is meeting both occupier and investment demand with a supply response whilst Sydney remains challenged on the supply front.
An added difficulty in both Melbourne and Sydney is the continual withdrawal of office space and development sites (both in CBD and non-CBD office markets) for conversion to residential or compulsory acquisition for public works.
<a href="https://www.propertyobserver.com.au/images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.16.37%20pm.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/21/Screen%20Shot%202017-02-21%20at%207.16.37%20pm.jpg" alt="">
Capital markets exhibited greater degrees of volatility throughout 2016 and have finished the year stronger with the ASX200 rising 9 percent over the last six months, the Australian dollar ended up largely unchanged against the US dollar and 10 year bonds yields softened by 90 basis points to approximately 2.9%.
Commercial property investment yields continued to firm across the board (by an average 20 basis points) – a theme we have been writing about for several years now.
Whilst the “bond yield” story has run its course, in some markets, fundamentals are improving rapidly.
“We believe this improvement will lead to further tightening in yields as investment capital starts to price in expectations of future NOI growth. This part of the yield cycle is just beginning,” the report stated.
</body></html>

Strong performance in the Australian 2016 commercial property market: Savills

<html><body>
Veteran agent Philip Waller has departed McGrath Estate Agents for a third time.
He has joined Savills Luxury Property in Double Bay, but overseeing its upper North Shore offerings.
He has achieved some of the North Shore’s most important landmark sales in the prestigious $5 million plus bracket.
His bio advised in the financial year, he again sold more properties for over $5 million than any other Upper North Shore agent.
Waller was at McGrath since 2011.
He was previously there from 2001 to 2006 when he joined the Knight Frank luxury team which was ill-fated.
He was also briefly at McGrath around 1997 when it had its offices in Juniper Hall.
</body></html>

jchancellor-FAypfDUnLy

Philip Waller departs McGrath for Savills Luxury

<html><body>
Sydney leads top global cities in office yields, which continue to firm as investors seek safe havens for their funds amidst economic and political uncertainties which look to prevail for some time, according to real estate firm Savills.
The latest World Office Yield Spectrum report by Savills and Australia’s Deakin University found yields across 11 gateway cities had firmed by an average 95 basis points since December 2014, with San Francisco witnessing a dramatic 32 per cent fall from nearly 7 percent to 4.64 percent.
Of the gateway cities, Sydney led the pack offering by far the most attractive yields at 5.37 percent, with LA West and San Francisco the only others offering above 4.50 percent.
Shanghai and LA West recorded falls of just 0.29 and 0.31 percent respectively.
The data from 54 cities across Asia, Europe, the US and Australia, put Hanoi on top with a prime yield of 8.75 percent followed by Ho Chi Minh City at 8.5 percent.
Taipei brought up the rear with the tightest yield of just under 2 percent, while Hong Kong was at 2.5 percent.
Report editor Tony Crabb, Savills national head of Research in Australia, said overall office markets looked set for another year of strong investment.
It will be driven by office property’s most preferred investment status along with economic and political factors which had pushed investors towards the safety of bricks and mortar.
"This is an interesting time in the investment cycle where markets have responded to the inflation/growth trade by pushing bond yields and growth stocks, whilst also recognising office markets should perform well as demand grows’’ Crabb said.
He said with some level of economic and political uncertainty remaining in most markets it was fair to say that office risk premiums would continue to offer very good value and hence drive demand and, in some instances, even firmer office investment yields.
"Much of what happens in 2017 and beyond will depend on the course the US Federal Reserve takes with regards to interest rates and the new President’s policy settings.
Those factors, along with Brexit negotiations and elections in key European countries, will largely determine how currencies behave, how trade flows and how capital moves around the world,’’ Crabb said.
He said if anything would limit office property investment it was the shortage of stock in most gateway markets which had experienced, in some instances, record investment levels in recent years.
"That shortage of stock is being exacerbated by the strength of leasing markets, especially in gateway cities, which is driving tighter vacancy and rental growth, and landlords are happily holding on for the ride,’’ Crabb said.
 World Office Yields: Gateway Cities – 2014 - 2016
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td style="text-align: center;" valign="top" width="129">
 
</td>
<td style="text-align: center;" valign="top" width="129">
December 2016 %
</td>
<td style="text-align: center;" valign="top" width="129">
December 2014 %
</td>
<td style="text-align: center;" valign="top" width="129">
Change %
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
Sydney
</td>
<td style="text-align: center;" valign="top" width="129">
5.37
</td>
<td style="text-align: center;" valign="top" width="129">
6.62
</td>
<td style="text-align: center;" valign="top" width="129">
- 1.25
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
LA West
</td>
<td style="text-align: center;" valign="top" width="129">
5.03
</td>
<td style="text-align: center;" valign="top" width="129">
5.34
</td>
<td style="text-align: center;" valign="top" width="129">
- 0.31
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
San Francisco
</td>
<td style="text-align: center;" valign="top" width="129">
4.64
</td>
<td style="text-align: center;" valign="top" width="129">
6.97
</td>
<td style="text-align: center;" valign="top" width="129">
- 2.33
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
Shanghai
</td>
<td style="text-align: center;" valign="top" width="129">
4.42
</td>
<td style="text-align: center;" valign="top" width="129">
4.71
</td>
<td style="text-align: center;" valign="top" width="129">
- 0.29
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
New York
</td>
<td style="text-align: center;" valign="top" width="129">
4.09
</td>
<td style="text-align: center;" valign="top" width="129">
5.04
</td>
<td style="text-align: center;" valign="top" width="129">
- 0.95
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
Singapore
</td>
<td style="text-align: center;" valign="top" width="129">
3.97
</td>
<td style="text-align: center;" valign="top" width="129">
5.29
</td>
<td style="text-align: center;" valign="top" width="129">
- 1.32
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
London
</td>
<td style="text-align: center;" valign="top" width="129">
3.88
</td>
<td style="text-align: center;" valign="top" width="129">
4.38
</td>
<td style="text-align: center;" valign="top" width="129">
- 0.50
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
Munich
</td>
<td style="text-align: center;" valign="top" width="129">
3.40
</td>
<td style="text-align: center;" valign="top" width="129">
4.25
</td>
<td style="text-align: center;" valign="top" width="129">
- 0.85
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
Tokyo
</td>
<td style="text-align: center;" valign="top" width="129">
3.20
</td>
<td style="text-align: center;" valign="top" width="129">
3.95
</td>
<td style="text-align: center;" valign="top" width="129">
- 0.75
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
Paris
</td>
<td style="text-align: center;" valign="top" width="129">
3.18
</td>
<td style="text-align: center;" valign="top" width="129">
4.52
</td>
<td style="text-align: center;" valign="top" width="129">
- 1.34
</td>
</tr>
<tr>
<td style="text-align: center;" valign="top" width="129">
Hong Kong
</td>
<td style="text-align: center;" valign="top" width="129">
2.53
</td>
<td style="text-align: center;" valign="top" width="129">
3.11
</td>
<td style="text-align: center;" valign="top" width="129">
- 0.58
</td>
</tr>
</tbody></table>
Source: Savills Research
Australia/New Zealand
The $27 billion worth of commercial property transactions recorded in Australia in 2016 remained above the five-year average for the fourth year running, Crabb said.
Meanwhile, the market was on track to record a fifth consecutive year of growth, a lack of portfolios and a diminishing supply of prime properties would limit investment volumes.
Foreign investors were the most active in 2016, purchasing 40 percent of stock reported sold - approximately $10.7 billion - while professional investors.
It is represented by trusts, funds and syndicates, spent $8.75 billion.
Crabb said while both buyer groups remained keenly interested in ongoing investment, yields would continue to firm.
"In some markets, particularly Sydney and Melbourne, market fundamentals are improving rapidly. "We believe this improvement will lead to further tightening in yields as investment capital starts to price in expectations of future NOI growth. This part of the yield cycle is just beginning,’’ he said.
<a href="https://www.propertyobserver.com.au/images/2017/02/14/Savills-1.jpg" target="_blank">Click to enlarge</a>
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/02/14/Savills-1.jpg" alt="">
Asia
In Hong Kong, Savills’ senior director, Research and Consultancy, Simon Smith, said yields across Asian investment markets had firmed but there was still some limited scope for further falls.
"The low interest rate environment, the ongoing search for yield and increasing allocations to real estate are all considered to be positives for the sector.
One of the most significant challenges for investors is a lack of prime office stock and volumes have fallen consistently compared with 2015.
This is a situation which is unlikely to reverse any time soon,’’ Smith said.
He said the lack of liquidity across most asset classes had arguably been masked by the above average number of portfolio deals recorded over the second half.
"Scarcity of assets has resulted in money accumulating on the side-lines causing fundraising to decline versus the previous year,’’ Smith said.
He said despite its inward focus Asian real estate capital had continued to explore overseas markets with the US attracting the lion’s share of deals.
Cross border activity had been dominated by China, South Korea, Singapore and Hong Kong in that order while South Korean activity registered the highest rate of increase.
UK/Europe
Savills director, Research Europe, Lydia Brissy, said Brexit had seen a decline in institutional investment activity but a sharp rise in demand from off-shore private investors.
Many investors, she said, had been attracted by the weakening of the pound which was seen as enough to compensate for a perceived increase in occupational risk.
"Overall, our predictions for 2017 and beyond are investment volumes are expected to trend downwards towards £50 billion per annum, with a swing away from opportunistic deals to income-security plays.
Yields are expected to rise in most sectors, though the stable debt market, low vacancy rates, and global investor demand is expected to put a lower ceiling on prime yields than was reached during the GFC.
Brexit definitely carries a risk of creating a sustained period of occupier uncertainty, but to some degree this should be balanced by lower levels of development activity.
However, until some clarity emerges as to how Britain will exit from the EU, the real impact on the UK market will be hard to quantify,’’ Brissy said.
She said the expectation was that investment volumes in Continental Europe in 2017 would be similar to 2016.
"Although interest rates are expected to rise to 1.16% in the Eurozone, the property market should remain high on investors’ radar.
In France, Germany and the Netherlands where elections will be held, we expect a wait and see attitude, however the prevailing story regarding core countries is the lack of prime product."
She said prime yields in non-core countries remained above the European average, offering more attractive returns and yield compression potential.
"This is especially so in countries like Spain and Italy where strong property fundamentals combined with the availability of portfolio opportunities are attracting foreign investors.’’
USA
In New York, director of US Real Estate Analytics at Savills-Studley, Keith DeCoster, said in comparison to the volatility in equity markets, real estate in the United States held up very well in 2016 with office property sales totalling $124 billion to November, roughly 4 percent below the $129.6 billion in the first 11 months of 2015.
"The 'most-favoured market' status of some gateways is slipping slightly with most buyers showing disdain for markets such as Manhattan and Washington DC, where demand is running short of growing supply," DeCoster said.
"On the other hand, they have remained active in Boston and Los Angeles, where the life science and entertainment/social media sectors continue to grow."
He said Boston’s market fundamentals were among the strongest in the country and appeared as though they had more to run than San Francisco.
It had seen a recent spike in sublet supply and drop off in leasing, while Los Angeles has seen its strongest leasing volume in a decade.
</body></html>

Savills

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Savills

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News